Solved

A Natural Monopoly Is One That

Question 142

Multiple Choice

A natural monopoly is one that:


A) monopolizes a natural resource such as a mineral spring.
B) is based on control of something occurring in nature (such as diamonds) .
C) has increasing returns to scale over the entire relevant range of output.
D) typically has low fixed costs,making it easy and "natural" for it to shut out competitors.

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